BPK Regrets Formula E Funding Using APBD Entirely, DKI Should Be Able To Find Sponsors

JAKARTA - The DKI Jakarta Representative Audit Agency (BPK) reports the results of an audit of the DKI Jakarta Provincial Government's financial transactions for the planned implementation of Formula E.

In the results of the audit issued on June 19, 2020, the BPK noted that all of the financing costs for the electric-powered car racing event which has been prepared since 2019 are still borne by the DKI Regional Budget (APBD).

"Funding for the 2019/2020 Formula E activities, both through the budget of the Youth and Sports Service (Dispora) and PT Jakpro's regional capital participation (PMD), the financing burden is still very dependent on the DKI Jakarta Provincial APBD funds", said the Head of the BPK Representative Office for DKI Jakarta Pemut Aryo Wibowo, quoted by VOI from the audit report on Friday, March 19.

In fact, the Governor of DKI Jakarta Anies Baswedan has issued Governor Regulation Number 83 of 2019. Its contents, Anies assigns BUMD PT Jakpro as the organizer to be able to find sponsors or cooperation from other parties.

"PT Jakpro can cooperate with other parties on the principle of mutual benefit or seek other sources of funding by applicable regulations. This can reduce the dependence of Formula E financing on the DKI Regional Budget", said Pemut.

Pemut continued, this problem will result in PT Jakpro unable to independently manage Formula E activities, thus increasing the risk of failure in the implementation.

Therefore, BPK urged DKI Dispora to encourage PT Jakpro to cooperate with other parties. In principle, to find other sources of funding in implementing Formula E apart from the APBD.

"BPK recommends the governor to instruct the Head of Dispora to compile a design for the involvement of the parties, along with developing options for obtaining independent financing and a revenue management plan", he said.

For information, initially, Formula E was planned to be held on June 6, 2020. Unfortunately, during the preparation for the first season, Indonesia was hit by the COVID-19 pandemic.

Formula E in 2020 has been postponed. Then, the Governor of DKI Jakarta Anies Baswedan again postponed the implementation of formula E in 2021.

BPK noted that Anies has paid a commitment fee and a Bank Guarantee of nearly IDR 1 trillion. In detail, there is a commitment fee paid in 2019 worth IDR 360 billion. Furthermore, in 2020, the paid commitment fee is equivalent to IDR 200.3 billion. Then, the Bank Guarantee that is paid is worth IDR 423 billion.